In days gone by commercial property investment was reserved for only professional investors, in fact it was pretty much only institutional investors who would have the confidence to invest in commercial property. That is: investment funds, fund managers, asset management companies, real estate investment trusts and such like. However, with the whole world and his financial advisor on the internet and privy to the same level of information as the aforementioned professionals, this is no longer the case.
Now that anyone and everyone can make a fortune investing in commercial property more and more people are trying. Here are 5 tips to help you do so:
1: Invest with your Head not with your Heart
When it comes to commercial property investment yields, commercial property investment funds, and commercial property investment advice, the data is often so immense that many people will use the data to make a shortlist and then choose based on the first dog they owned, or school they went to. This is the wrong approach, because bringing sentiment into it will make it harder to get rid of poor performing investments later.
2: Make the Most of Commercial Auctions
Auctions are a great place to find investment properties, especially in the digital age. Now we can view properties online, pre-qualify, have a viewing, and asses the true value, before attending the auction with a clear price range for bidding.
3: Don't Hesitate in Severely Depressed Markets
In depressed markets where properties are going for a song, do enough research to protect yourself but not so much as to lose out on the deal. Remember, if it is being sold at a ridiculously low price it will almost certainly appreciate in value, most probably rapidly when the market recovers, you just need to make sure of the legalities and that it is a genuine deal.
4: Know When to Fold 'Em
This comes down to the first tip of not bringing emotional factors into investing in commercial property, because when an investment stops performing you need to be ruthless and uncaring when it comes to getting rid of it. Too many investors let emotional investments become a drain on profits for far too long -- don't be one of them.
5: Constant Monitoring
Far too many investors are far too busy to keep a watchful eye on the performance of their investments. This is obviously less true of commercial investment property than other products like funds and shares. It is essential that we set aside time to really analyse the performance of our investments against comparable products on the market to ensure we are maximising ROI.